Peru’s embattled government is plowing ahead with a sweeping mining agenda, reviewing 134 new projects worth over $6bn as it attempts to stabilise an economy battered by political unrest and social discontent. President Dina Boluarte’s administration is betting on the extractive sector to revitalise public finances and counter persistently high poverty rates nearing 30%, according to details from her July 28 address to Congress.

The proposed portfolio includes exploration and exploitation schemes across the mineral-rich Andes, primarily focused on copper, but also targeting gold, silver, and zinc. These initiatives form part of a broader investment pipeline totalling $65bn, registered with the Ministry of Energy and Mines. Boluarte claimed that between January and April 2024 alone, mining exports grew by 22.7% year-on-year, while the sector is expected to directly employ over 300,000 workers by year’s end.

Despite this ambitious outlook, much of the sector remains entangled in Peru’s wider governance crisis. According to EFE, Boluarte’s approval rating has sunk to just 2.1% amid public anger over rising salaries for senior officials, including her own, and an ongoing investigation into dozens of protester deaths during early 2023 unrest. Protesters marched towards Congress on Independence Day carrying mock coffins, a stark reminder of the administration’s deep unpopularity.

A particularly sensitive issue is informal mining. Over 50,000 small-scale miners were recently excluded from the state’s formalisation process, leaving only 31,000 eligible for reintegration. As Mining Technology reported, these groups have blocked transport corridors used by major operators such as Glencore and MMG, triggering negotiations and a temporary suspension of protests. The government is now drafting legal reforms and planning a private mining fund aimed at easing access to finance for compliant small operators.

Boluarte argued that formalised small-scale mining could generate more than $5bn in annual revenue and play a vital role in regional job creation. However, informal operations continue to pose environmental and fiscal risks, including mercury contamination, tax evasion, and exploitative labour conditions.

In parallel, Peru has signed an agreement with Ecuador’s state-owned oil company Petroecuador to link oil fields to the Talara refinery via Peruvian infrastructure, a signal of broader ambitions to monetise energy resources amid domestic fiscal pressures.

While Peru remains the world’s third-largest copper producer, the success of its mining expansion hinges on political stability, regulatory clarity, and resolving tensions with both communities and informal operators.